Strategy. Under normal circumstances, the Fund invests at least 80% of its assets in securities of companies with small market capitalizations, including instruments with characteristics of small-capitalization equity securities (such as derivatives). The Fund invests mainly in common stocks of small, publicly traded companies. As of December 31, 2024, the weighted average market capitalization of the Fund was approximately $3.6 billion. This Fund is sub-advised by both Franklin Mutual Advisers, LLC (Franklin) and BlackRock Investment Management, LLC (BlackRock). Pacific Life Fund Advisors, LLC (PLFA) is the Funds investment adviser and, subject to the approval of the Trusts board of trustees, selects the Funds sub-advisers and monitors their performance on an ongoing basis. PLFA has selected the Funds current sub-advisers because of … Show more… Under normal circumstances, the Fund invests at least 80% of its assets in securities of companies with small market capitalizations, including instruments with characteristics of small-capitalization equity securities (such as derivatives). The Fund invests mainly in common stocks of small, publicly traded companies. As of December 31, 2024, the weighted average market capitalization of the Fund was approximately $3.6 billion. This Fund is sub-advised by both Franklin Mutual Advisers, LLC (Franklin) and BlackRock Investment Management, LLC (BlackRock). Pacific Life Fund Advisors, LLC (PLFA) is the Funds investment adviser and, subject to the approval of the Trusts board of trustees, selects the Funds sub-advisers and monitors their performance on an ongoing basis. PLFA has selected the Funds current sub-advisers because of their different approaches to investing in securities of companies with small market capitalizations. Franklin uses an active management style; BlackRock uses an index management style and seeks to track the performance of the Funds index. PLFA allocates the Funds assets between Franklin and BlackRock but subject to PLFAs discretion may change the allocation or rebalance as it deems appropriate to meet the Funds investment goal at any time without shareholder notice. PLFA allocates assets to the sub-advisers to increase diversification among securities and investment styles in seeking to increase the Funds potential for investment return while managing its risk and volatility. In addition, PLFA analyzes the risks arising from the investments of each strategy; evaluates the impact of any risk exposures on the Funds risk/return objectives; contemplates valuations, investor sentiment and other economic factors; and considers adjustments to strategy allocations as a result. The Fund may deviate from PLFAs intended strategy allocation due to cash flows and changes to asset values. The sub-advisers normally invest the Funds assets across different groups of industries/sectors, but may invest a significant percentage of the Funds assets in issuers in a single sector at their investment discretion in seeking the investment goal of the Fund. As of December 31, 2024, a significant portion of the Fund is represented by securities of companies in the Financial sector. The Fund may lend its portfolio holdings to certain financial institutions. Franklin managed portion: Franklin generally considers a company to be a small-capitalization company if it has a market capitalization that is no more than: (1) the largest market capitalization of a company in the Russell 2000 Index as of the most recent month end; or (2) the average of the month end largest market capitalization of a company in the Russell 2000 Index over the prior 12 months, whichever is greater. As of December 31, 2024, those capitalization amounts were (1) $14.7 billion and (2) $28.7 billion, respectively. Franklin generally invests its portion of the Funds assets in common stocks that it believes are currently undervalued and have the potential for capital appreciation. In choosing investments that are undervalued, Franklin focuses on companies that have one or more of the following characteristics. Stock prices that are low relative to current or historical or future earnings, book value, cash flow or sales all relative to the market, a companys industry or a companys earnings history. ? Recent sharp price declines but the potential for good long-term earnings prospects, in the sub-advisers opinion. ? Valuable intangibles not reflected in the stock price, such as franchises, distribution networks or market share for particular products or services, underused or understated assets or cash, or patents and trademarks. ? In addition to price, Franklin, in choosing an investment, may consider a variety of other factors that may identify the issuer as a potential turnaround candidate or takeover target, such as ownership of valuable franchises, trademarks or trade names, control of distribution networks and market share for particular products. Purchase decisions may also be influenced by income, company buy-backs, and insider purchases and sales. Environmental, social and governance (ESG) related assessments of companies may also be considered. Franklin does not assess every investment for ESG factors and, when it does, not every ESG factor may be identified or evaluated. Franklin employs a bottom-up stock selection process. Franklin may invest up to 25% of its portion of the Funds assets in securities of foreign issuers, including American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), and Global Depositary Receipts (GDRs), that may be U.S. dollar or foreign currency-denominated. Franklin may sell a holding when it appreciates to a stated target, it fails to perform as expected or when other opportunities appear more attractive. BlackRock managed portion: BlackRock generally considers a company to be a small-capitalization company if the company has a market capitalization within the range of companies included in the Russell 2000 Value Index, which measures the performance of the small-capitalization value segment of the U.S. equity universe. It includes those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. As of December 31, 2024, the market capitalization range of the Russell 2000 Value Index was approximately $6.1 million to $13.2 billion. This portion of the Fund principally invests in common stock. This portion of the Fund will generally hold substantially all of the stocks in the index in approximately the same proportions as their weightings in the index. The sub-adviser will utilize a sampling approach to seek to replicate the performance of the Russell 2000 Value Index by investing in a portfolio of securities in the Russell 2000 Value Index that collectively has an investment profile similar to that of the Russell 2000 Value Index. The sampling approach may result in a small part of this portion of the Fund being invested in certain stocks in proportions that are not approximately the same as their index weightings, but which are expected to result in a portfolio that has, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Funds index. This portion of the Fund will not concentrate, except to the same approximate extent as the Funds applicable benchmark index may concentrate, in the securities of a particular industry or group of industries (also known as a sector). This portion of the Fund will not deviate from the above noted strategies at any time for any reason. Show less